President Trump’s Chinese Tariff Announcement Dampen Sentiment

President Trump’s Chinese Tariff Announcement Dampen Sentiment

President Trump’s Chinese Tariff Announcement Dampen Sentiment

$DIA, $SPY, $QQQ, $RUTX, $VXX

Wall Street dipped Monday, with tech shares leading the retreat, as investors prepared for another tranche of US tariffs on Chinese goods.

This latest round of tariffs is expected to slap a duty of around 10% on $200-B worth of Chinese goods. Beijing has responded by saying it may decline a US offer to resume trade talks if the duties are implemented, adding it’s not going to negotiate with “a gun pointed to its head.”

The S&P 500 and the DJIA held modest losses for much of the session.

The consumer discretionary sector and the top-weighted technology sector, which hold the other FAANGs  finished at the bottom of the sector standings, losing roughly 1.3% apiece.

Financials (-0.4%) and health care (-0.3%) also finished in the Red, but the 7 remaining groups finished in the Green. Gainers were limited though, with no group adding more than 0.5%.

Overseas, stock markets in Asia opened the week on a lower note, weighed down by the threat of new tariffs, with China’s Shanghai composite losing 1.1% and Hong Kong’s Hang Seng tumbling 1.3%.

European equity markets also slid, but losses were more modest, with Germany’s trade-heavy DAX shedding 0.2%.

US Treasuries were under pressure early, pushing the yield on the benchmark 10-yr note as high as 3.02% its highest level in 4 months. However, buyers emerged later in the session, leaving the 10-yr yield higher by just one basis point at 3.00%.

Meanwhile, the US Dollar (.DXY) Index finished off 0.5% to 94.07.

Monday, the major US stock market indexes finished at: DJIA-92.55 at 26062.12, NAS Comp -114.25 at 7895.79, S&P 500 -16.18 at 2888.80

Volume: Trade on the NYSE came in at 732-M/shares exchanged

  • NAS Comp +14.4% YTD
  • Russell 2000 +10.9% YTD
  • S&P 500 +8.1% YTD
  • DJIA +5.4% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
17 September 2018 QQQ 183.99 Bullish (0.33) 182.91 186.74
17 September 2018 DIA 260.62 Very Bullish (0.50) 259.60 264.56
17 September 2018 SPY 288.88 Bullish (0.42) 288.44 291.48

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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